Adani-Hindenburg controversy: Economist Swaminathan Iyer has said that the Hindenburg report could be a “blessing in disguise” for Gautam Adani and his business empire as it would bring in some financial discipline. Noted economist said the Hindenburg report, which saw the combined equity market value of 10 of its companies below the $100 billion mark, would help Adani Group slow down from the “breakneck pace” at which it expansion and diversification.
“I think the Hindenburg Report may be the best thing that has happened to Adani. It will slow down the pace of its expansion and diversification, and force its financiers to be diligent and cautious in the future. For profit could impose the highly desirable financial discipline. Iyer wrote in his column that the Hindenburg may have been a blessing in disguise – or, in Winston Churchill’s words, a happy ending to his wife after his post-war electoral defeat. In response to an attempt to do so, a blessing was ‘quite effectively disguised’.
He said that although critics have repeatedly accused Adani of stock manipulation and political mileage, Iyer highlighted that Adani has been able to reach the global No. 3 position in two decades due to his exceptional business acumen. Started it.
“Critics allege that the BJP is ‘giving away’ valuable assets ranging from ports and mines to airports and transmission lines to Adani. No. The government initially offered Adani a small port in the Kutch desert without a rail connection. The conversion of this desert patch into India’s largest port is close to miraculous. Adani also acquired jetties and ports at a dozen other locations, beating out global giants such as Maersk and Dubai World in competitive auctions. He is incomparably India’s top port operator, handling an estimated quarter of total Indian freight. This makes him a national champion,
Talking about Haifa Port in Israel and two wind power plants in Sri Lanka, Iyer said no Indian rival would dare to take such a risk as Adani did.
“The Sri Lanka terminal will cost $750 million and the Haifa Port $1.18 billion. No Indian rival would dare to take that much risk, even if it was served on a platter. Adani’s acumen has made him more of a strategic player than a businessman,” Iyer wrote.
Recently, Israeli ambassador Nor Gillon said the sale of Haifa port as part of Israel’s disinvestment of state-owned ports was a “historic” deal and noted that operating the port is the “bread and butter” of the Adani group.
He added that the Adani group has “paid the full cost of the Haifa port” and has sufficient funds for further development of the facility.
A consortium led by the Adani Group last month completed the purchase of the Haifa port, a major trade and tourism hub on the Mediterranean, for $1.15 billion. Standing alongside Israeli Prime Minister Benjamin Netanyahu at a ceremony marking the deal’s completion, Adani Group Chairman Gautam Adani called for further investment in Israel to “change the entire port landscape”.
Recently, Sri Lanka’s Board of Investments approved a $442 million wind power project in favor of the Adani Group, which will set up two wind farms in the north of the island. Both the plants will supply electricity to the national grid till 2025. The Adani group has also signed a $700 million strategic port terminal project in Colombo by 2021.